Mining Industry's Role in Global Critical Minerals Supply Chain Prioritized in Budget 2023
OTTAWA, ON, March 28, 2023 /CNW/ - Today, the federal government has recognized the minerals and metals industry's central role in enabling the transition to a net zero economy and building Canada's future economy.
"Without mining, there are no electric vehicles, no clean power from wind farms, solar panels or nuclear energy, and no transmission lines," stated Pierre Gratton, the Mining Association of Canada's (MAC) President and CEO. "Budget 2023 bolsters the ability of Canada's mining sector to deliver for Canada and for the planet."
The release of Budget 2023 comes just days after President Biden's visit to Ottawa, where the need for Canada-US collaboration on critical minerals supply chains was discussed at length. Budget 2023 builds on previous commitments in Budgets 2021 & 2022, the 2022 Fall Economic Statement and the Canadian Critical Minerals Strategy and commits to the following:
A Clean Technology Manufacturing Tax Credit equal to 30 per cent of the cost of investments in new machinery and equipment used to extract, process or recycle critical minerals essential for clean technology supply chains.
A 15 per cent refundable tax credit for eligible investments in clean electricity generation systems, including large-scale and small modular reactors. Eligibility is extended to include publicly-owned utilities, which will accelerate necessary investment in electric infrastructure, including in northern Canada such as the Atlin Hydro Expansion Project and the Kivalliq Hydro-Fibre Link.
A commitment to improve the efficiency of the impact assessment and permitting processes for major projects by the end of 2023.
A re-allocation of $1.5 billion within the Strategic Innovation Fund to support projects in sectors including clean technologies, critical minerals and industrial transformation.
The establishment of a $1.5 billion Critical Minerals Infrastructure Fund, to be managed by Natural Resources Canada, towards energy and transportation projects to unlock priority mineral deposits.
Supporting loans to Indigenous communities to support them in purchasing equity stakes in major projects through the Canada Infrastructure Bank.
"In the face of increased demand for low carbon technologies, and the need to ensure the minerals and metals essential to their development are mined with commitments to ESG, Indigenous engagement and sustainability at the forefront, there is no better choice than Canada," said Gratton. "I am optimistic that with these new measures Canada will be able to attract new private sector investment into Canada's mining, smelting and refining industry, creating well-paid jobs for Indigenous and non-Indigenous Canadians across the country."
The mining industry is a major sector of Canada's economy, contributing $125 billion to the national GDP and is responsible for 22 percent of Canada's total domestic exports. Canada's mining sector employs 665,000 people directly and indirectly across the country. The industry is proportionally the largest private sector employer of Indigenous peoples in Canada and a major customer of Indigenous-owned businesses.
The Mining Association of Canada is the national organization for the Canadian mining industry. Its members account for most of Canada's production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.
SOURCE Mining Association of Canada (MAC)
View original content: http://www.newswire.ca/en/releases/archive/March2023/28/c4588.html